Results reported 15 October 2026 | Telecom and digital infrastructure | Consolidated
The Quick Take
Tata Communications reported record Q2 FY27 EBITDA of Rs 1,422 cr, up 21%, and PAT of Rs 341 cr, up 86%. Revenue rose 9.6% to Rs 6,688 cr. The shares rose 6.3% at the NSE close, after a higher intraday move. Management asked investors to wait one more quarter for order-book conversion.
Q2 FY27 snapshot (consolidated, Rs crore)
| Metric | Q2 FY27 | Comparison |
|---|---|---|
| Revenue from operations | 6,688 | +9.6% YoY (Q2 FY26: 6,100) |
| EBITDA (margin) | 1,422 (21.3%) | +21.2% YoY; margin up from 19.2% |
| PAT (after minority) | 341 | +86% YoY (Q2 FY26: 183) |
- Data revenue Rs 5,810 cr (+12.2%).
- Digital portfolio revenue +18.6%; digital EBITDA margin improved to -3.6% from -6.9%.
- H1 FY27 PAT Rs 475 cr (H1 FY26: 373); H1 EBITDA +14.8%.
Balance sheet and cash
Net debt Rs 11,197 cr, 2.17x EBITDA. Free cash flow Rs 212 cr. ROCE 15.9%. A contingent liability of Rs 1,658 cr relates to a Canada Revenue Agency matter, with an in-principle settlement reached.
Management commentary
The CEO said the company will deliver on FY27 commitments and expects double-digit EBITDA growth for the year. The CFO said there are no one-offs in Q2. There is no numeric revenue or PAT guidance.
Risks
- Forex and order-conversion timing.
- Cyclical media business.
- Competition and execution.
Setup
Neutral. Operating leverage is strong, but the next quarter is the test of order conversion.
This is educational analysis, not personalized investment advice. Do your own research before investing.
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